MUMBAI:  TV Today Network Limited, part of the India Today Group, has entered into a memorandum of understanding with Creative Channel Advertising and Marketing for the proposed sale of its FM radio broadcasting operations whilst simultaneously appointing the firm as its advertising sales agent. TV Today made this declaration through a regulatory filing with the Bombay stock exchange a short while ago. 

The Rs 20 crore deal involves three FM radio stations broadcasting on the 104.8 frequency in Mumbai, Delhi and Kolkata. The transaction structure includes an initial payment of Rs. 10 crore upon MoU execution, with the remaining amount due at closing, subject to regulatory approvals from the ministry of information & broadcasting.

During the transition period, Creative Channel will serve as TV Today's advertising sales agent, leveraging its expertise to sell airtime to governmental bodies and corporate clients. The arrangement is intended to bolster advertising revenue for the radio business, which reported losses despite generating Rs 16.18 crore turnover in FY 2023-24 — representing merely 1.7 per cent  of TV Today Network's total revenue.

The board of directors had initially resolved on 9 January to shutter the radio division entirely before receiving interest from potential buyers. The subsequent approval for sale came during their 11  February meeting.
TV Today may execute the transaction either directly or through its wholly owned subsidiary, Vibgyor Broadcasting. The latter approach would constitute a related party transaction, though conducted on an arm's length basis.

Creative Channel, established in 1991 with Rs 5.23 crore paid-up capital, specialises in television broadcasting, advertising and programming. The company has no connection to TV Today's promoter group.

The transaction is expected to conclude by 31 January 2026, marking TV Today's strategic exit from the challenging FM radio sector amidst evolving industry dynamics.